An urgent appeal has been made to the Fijian Government to revoke the taxes imposed on nonprofit organizations, a policy enacted by the previous administration. Digby Bossley, the chairman of the JP Bayly Trust, expressed concern that this legislation is severely limiting the financial resources available for those in need.
Mr. Bossley highlighted that the trust, which operates independently of government funding, is taxed on rental income utilized for charitable purposes. He stated, “Regrettably, the prior government decided to begin taxing charities, which translates to reduced funds for supporting the needy.” The organization is also burdened with expenses related to purchasing food and school supplies for distribution, yet does not qualify for tax refunds.
Despite facing such financial constraints, the JP Bayly Trust remains committed to aiding 1,300 families across Fiji, providing food rations to approximately 4,000 individuals each month. Additionally, the trust supports about 360 students from preschool through university, emphasizing the critical role education plays in breaking the cycle of poverty. The organization invests around $300,000 annually on food and educational support, operating through its branches in Suva, Lautoka, and Labasa.
In response to these concerns, Charan Jeath Singh, the Sugar Minister, urged the trust to present their challenges during the upcoming budget discussions. He expressed regret that the organization has not received adequate government backing and assured that the proposal for tax exemptions for charities would be considered by the Minister of Finance.
“The trust has been providing valuable assistance to families for 70 years without seeking publicity for its charitable acts,” Mr. Singh noted. This call to action reflects a growing recognition of the essential services provided by nonprofits, like the JP Bayly Trust, which play a vital role in community support, particularly during challenging times.
The current situation highlights the importance of reviewing fiscal policies that affect nonprofit organizations and recognizing their contributions to society. With collaborative efforts and government support, there is hope for enhancing the operational landscape for charities, ultimately empowering them to better serve vulnerable populations.
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